Our experience in the sector allows us to observe that, since 2020, the revaluation of homes in the Balearic Islands is rising by at least 15% annually. Every day we find more price rises, and, more importantly, more buyers willing to pay it.
Does this mean it is a good time to sell, and a good time to buy?
Currently, we have more buyer clients looking for houses to buy than seller clients willing to sell their properties. House prices are going up and up and, at the moment, many foreigners are willing to pay market prices.
Given the current scenario, it can also be considered a good time to buy, as house values are rising day by day. So, you buy the house, enjoy it for as many years as you want, and with the revaluation you pay the mortgage interest on the loan granted.
The Balearics are at a very important and interesting point in the real estate bubble!
The price of housing in the Balearic Islands continues to rise
According to Euroval’s analysis, the average value of new housing is above the maximums of the real estate bubble. The Balearic Islands are the region of Spain where the selling price of properties has increased the most. It is worth noting that in the last 15 years it has increased by 108.2%.
But, what is the reason for this increase in prices?
The Balearic Islands is a community with great infrastructures, where the quality of life is higher than in other European cities. It is a community that always offers good services.
Besides being one of the most outstanding tourist areas in Europe, it has a perfect location in the Mediterranean, where it is easy to fall in love with its charm.
In which forms can you acquire a property?
There are many ways to acquire a property. However, these are the most typical ones that Bufete Frau works with. We explain them in a brief and simple way for your understanding:
Purchase and sale
The most common way of acquiring a property is through the well-known purchase and sale. It is a consensual, bilateral, onerous and typical contract, whereby one party undertakes to transfer the property in favour of another in exchange for a price in money.
Succession
Succession is another way of acquiring property. The right of succession is transferred upon the death of the owner. It is the process of passing on the assets of a deceased person.
Donation
A legal act by which one person transfers property free of charge to another person. Both parties must agree to the transaction.
Dation in lieu of payment
This is a legal figure that consists of handing over an asset in exchange for payment of a debt. It consists of handing over the property to the creditor when it is impossible to meet the loan payments.
Acquisition by public auction
This type of acquisition is the sale of a property at the best price offered. These properties can be either owned by private individuals or institutions. It is the mechanism of concluding the purchase contract in which the price and the buyer of the property is determined by the bidding of the participants.
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